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Wells Fargo ordered to pay $185 million for fake accounts

Staff Writer |
Wells Fargo Bank has been ordered to pay $185 million in fines and penalties to settle "the widespread illegal practice of secretly opening unauthorized deposit and credit card accounts."

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According to the Consumer Financial Protection Bureau (CFPB), thousands of Wells Fargo employees opened the accounts in secret so they would get bonuses for hitting their sales targets.

More than 2 million deposit and credit card accounts may have been created without customer authorization.

Wells Fargo must pay $100 million to the CFPB — the largest fine ever levied by the federal consumer watchdog. It also will pay $50 million to the City and County of Los Angeles, along with a $35 million penalty to the Office of the Comptroller of the Currency.

It also must pay full restitution to all victims of the scheme.

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